Sony buys video sharing site

 

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Posted on 24 Aug 2006 at 15:03

Sony's movie division has acquired Grouper, a website that lets users watch, share and create video in a thinly-veiled attempt to hop on the YouTube bandwagon.

Sony Pictures Entertainment will pay $65 million for Grouper's peer-to-peer video sharing network, which enables downloads of uncut original video to be shared by its members.

Grouper users can browse videos, post them to a wide variety of third-party websites - such as MySpace, Blogger and Friendster - and upload them to mobile devices including PSPs and iPods. The site also provides video editing tools so that videos can be quickly uploaded from cameras, camcorders and webcams.

'Consumers are spending more and more time on sites like Grouper, and as one of the world's largest creators of entertainment, we want to be where the audiences are,' said Michael Lynton, Sony Pictures Entertainment chairman and chief executive officer. 'This acquisition demonstrates the breadth of involvement of Sony Corporation in the field of digital online entertainment. Many people in the Grouper community use Sony cameras to create videos and Sony VAIO computers and mobile devices to store and view them. It makes sense to complete the circle by having Grouper be a part of Sony Pictures Entertainment.'

Grouper CEO and co-founder Josh Felser said that the takeover will bring together user-generated and copyrighted content across platforms and devices for the first time.

'When you pair Grouper's innovative video sharing platform on the Web and the desktop with Sony's connected devices and copyrighted media you create a dynamic and exciting environment for consumers,' he said.

Lynton added the acquisition is a strategic initiative consistent with Sony Pictures' vision of making entertainment accessible to consumers whenever, wherever and however they want. He said that no immediate changes are planned for the site but over time there is potential for development of ad-supported and premium content businesses.

'Grouper gives us a strong platform for growth,' he said.

Author: Simon Aughton